A group of investors that includes Michael Ovitz and former IBM topper Jerome York said Tuesday it will acquire catalog and online computer products retailer Micro Warehouse Inc. for $725 million.

Shareholders will receive $19 in cash for each share under terms of the deal to buy the Norwalk, Conn.-based retailer, a 44% premium over the stock’s slumping average price over the past 30 days.

Deal translates to a buyout price of approximately $500 million, after adjusting for cash and option proceeds, analysts said.

Micro Warehouse has been seen as a stock ripe for takeover by private investors, considering its low-price and small cap that’s cheap relative to its earnings.

Shares of Micro Warehouse rose $2.81 to close at $18.06, a gain of 18%. It hit a 52-week-high of $47 in February. The company has a market cap of $646 million.

The buyout gives Micro Warehouse a much-needed boost, as it has struggled with rising competition from other e-tailers, falling sales for its core Apple Computer product lines, management turmoil and shareholder lawsuits.

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With Ovitz as a player behind the deal, Micro Warehouse could soon see its online retailing venture restructured, possibly becoming a part of the showbizzer’s own e-tailing operation CheckOut.com, which already sells computer programs, as well as homevids and music. CheckOut recently took over Wherehouse Music’s e-tailling efforts.

Micro Warehouse co-founder Peter Godfrey will be replaced by York as chairman and CEO. York was the well-respected chief financial officer of IBM in the mid-1990s.

In addition to York, who has been working for Kirk Kerkorian’s hotel and investment company Tracinda Corp., Gary Wilson, chairman of Northwest Airlines Corp. and investment firm Freeman Spogli & Co. Inc. round out the investment leaders.

Under the agreement unanimously approved by the Micro Warehouse board, a cash tender offer will begin within the next five business days for all Micro Warehouse shares. The acquisition is expected to be completed by the end of January.

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A group of investors that includes Michael Ovitz and former IBM topper Jerome York said Tuesday it will acquire catalog and online computer products retailer Micro Warehouse Inc. for $725 million. Shareholders will receive $19 in cash for each share under terms of the deal to buy the Norwalk, Conn.-based retailer, a 44% premium over […]

A group of investors that includes Michael Ovitz and former IBM topper Jerome York said Tuesday it will acquire catalog and online computer products retailer Micro Warehouse Inc. for $725 million. Shareholders will receive $19 in cash for each share under terms of the deal to buy the Norwalk, Conn.-based retailer, a 44% premium over […]

A group of investors that includes Michael Ovitz and former IBM topper Jerome York said Tuesday it will acquire catalog and online computer products retailer Micro Warehouse Inc. for $725 million. Shareholders will receive $19 in cash for each share under terms of the deal to buy the Norwalk, Conn.-based retailer, a 44% premium over […]

A group of investors that includes Michael Ovitz and former IBM topper Jerome York said Tuesday it will acquire catalog and online computer products retailer Micro Warehouse Inc. for $725 million. Shareholders will receive $19 in cash for each share under terms of the deal to buy the Norwalk, Conn.-based retailer, a 44% premium over […]

A group of investors that includes Michael Ovitz and former IBM topper Jerome York said Tuesday it will acquire catalog and online computer products retailer Micro Warehouse Inc. for $725 million. Shareholders will receive $19 in cash for each share under terms of the deal to buy the Norwalk, Conn.-based retailer, a 44% premium over […]

A group of investors that includes Michael Ovitz and former IBM topper Jerome York said Tuesday it will acquire catalog and online computer products retailer Micro Warehouse Inc. for $725 million. Shareholders will receive $19 in cash for each share under terms of the deal to buy the Norwalk, Conn.-based retailer, a 44% premium over […]

A group of investors that includes Michael Ovitz and former IBM topper Jerome York said Tuesday it will acquire catalog and online computer products retailer Micro Warehouse Inc. for $725 million. Shareholders will receive $19 in cash for each share under terms of the deal to buy the Norwalk, Conn.-based retailer, a 44% premium over […]